Learning Outcomes

On successful completion of this module students should be able to:

* List, describe, explain, illustrate, compare and contrast alternative: definitions of and approaches to governance; corporate governance and control mechanisms; risks and approaches to risk management; ethical theories and frameworks; and motivations and mechanisms for earnings and image manipulation.

* Explain and assess the role of governance in the effective management and control of organisations and of the resources for which they are accountable.

* Explain and evaluate the governance role of internal control, review and compliance mechanisms.

* Explain and discuss the importance of the proper identification and management of risk.

* Explain and discuss the need in business for an ethical framework and values which subsume consideration of the interests the organisation, its stakeholders and society.

* Analyse and discuss accounting/business scandals in terms of governance and ethical failure.

Aims

This module is a core module to the SMB N400 (Accounting and Finance).

The module covers topics which are essential subject matter within any high-quality undergraduate degree in accounting and/or finance; and which are expected by:

Further, the module contributes to the maintenance of (or is anticipated to contribute to the achievement of [further]) accreditation from professional accountancy bodies, including:

Institute of Chartered Accountants in England and Wales

Association of Chartered Certified Accountants

Chartered Institute of Management Accountants

Institute of Chartered Accountants of Scotland

Brief description

This module aims to provide students with a thorough treatment of: (i) the governance of organisations in the broad context of agency and stakeholder relationships, focusing on the roles and responsibilities of corporate officers, and the processes of accounting and auditing as support and control mechanisms; (ii) the identification, assessment and mitigation/control of risk as a key aspect of responsible management; (iii) ethical frameworks and professional values; and (iv) earnings and image manipulation. The module is rounded off with consideration of recent/topical accounting and business scandals, and of latest and forthcoming developments in corporate governance and responsibility.

Content

The following topics are covered:

A Governance and responsibility

The meaning and scope of governance

Agency relationships and theories

Different approaches to corporate governance

Corporate governance regulation

The board of directors: responsibilities, committees, remuneration

Corporate social and environmental responsibility

Reporting and disclosure

B Internal control and review

The role of management information and control systems

Nature of internal controls, compliance

Auditing and reporting matters

C Identifying, assessing and controlling risk

Risk and the risk management process

Identifying, categorising, assessing and measuring risk

Targeting, monitoring, controlling and reducing risk

D Professional values and ethics

Alternative theories on ethics

Social and environmental issues in the conduct of business

Different framework approaches to ethics and social responsibility

Professions and the public interest

Professional practice and codes of ethics

Ethical characteristics of professionalism

E Earnings and image management

Accounting policy choice, earnings management or fraud?

Earnings and image management: motivations, mechanisms and detection

Recent accounting and business scandals

F Recent and forthcoming developments

Revision

Module Skills

* Develop confidence in and clarity of oral communication via example class/tutorial participation
* Develop clarity and focus of written communication via development of answers to self-study questions/ assignment production
* Develop and use appropriate subject-specific vocabulary in oral and written communication

Improving own Learning and Performance

* Identify and distil the key issues covered by lectures, tutorials and self-study
* Identify and use a range of learning resources
* Investigate benefits of small group working on self-study
* Structure study to accommodate intensive learning

Information Technology

* Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information
* Use of word-processing skills in assignment

Personal Development and Career planning

* Preparation for seminar tasks will encourage initiative, independence and self-awareness
* Identify a variety of potential career opportunities within the financial and professional services sector.

Problem solving

* Scenario-based problems treated in lectures and applied in seminars, assignment and examination.